Large scale-industrial-development-in-pakistan
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Large scale-industrial-development-in-pakistan



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Large scale-industrial-development-in-pakistan Large scale-industrial-development-in-pakistan Presentation Transcript

  • Industry and Trade of Pakistan – Part 110/09/12 RAZA LILANI.
  • Industrial Policy of Pakistan The present policy follows the tried and tested policy of indigenous, broad-based industrialization to attain prosperity. This policy seeks to turn Pakistan into a factory for the world rather than a shop. Industrialization is a long-term process and requires consistency and continuity of policies. No industrial policy will be successfully implemented unless the basic inputs of affordable energy, physical and electronic connectivity and infrastructure, skilled and productive labor enabling macroeconomic environment and a friendly regulatory regime are in place.10/09/12 RAZA LILANI.
  •  Sustained growth in manufacturing of at least 8% per annum leading to a doubling of manufacturing output in ten years. Expansion of the currently stagnant industrial employment from the current 13% of labour force to at least 20%. Accounting for employment elasticity this means an addition of 4 million workers to the industrial workforce, who will need to possess different and higher skills to succeed in the global competitive environment.10/09/12 RAZA LILANI. View slide
  •  Radical increase in Pakistan’s manufacturing value addition (MVA) by more than 100%. Diversification from traditional resource based /low technology enterprise to medium & high technology enterprise. A sharp increase in exports of medium and high technology manufactures to 10 % from the current 1.5%10/09/12 RAZA LILANI. View slide
  • 1. Structure of Industry in Pakistan and its export potential  Pakistan ranks 55th worldwide in factory output.  Pakistans industrial sector accounts for about 24% of GDP.  Cotton, textile production and apparel manufacturing are Pakistans largest industries, accounting for about 66% of the merchandise exports and almost 40% of the employed labour force. 10/09/12 RAZA LILANI.
  • Other major industries include cement, fertilizer, automobile, edible oil, sugar, steel, tobacco, chemicals, light engineering, defense production, food processing, ship manufacturing and ship breaking industry.Government policies aim to diversify the countrys industrial base and bolster export industries.10/09/12 RAZA LILANI.
  • 2. The Performance of Large Scale Industry in Pakistan – Challenges & Issues 10/09/12 RAZA LILANI.
  • PAKISTAN TEXTILE INDUSTRYTextiles is the premier industry & backbone of Pakistan’s Economy:• Major Agrarian industrial sector.• Generates about 55.6 % of exports• Constitutes 32.6 % of Manufacturing Industry• Employs 40 % of country’s working force in manufacturing sector• Contributes 7.4% to the total GDP• Drives Banking, Shipping ,Transport ,Insurance, Machinery, Dyes/Chemicals ,Printing/Packaging & allied sectors.
  • Total Investment in Textile $ 7.5 Billion (1999-2010)10/09/12 RAZA LILANI.
  • PAKISTAN TEXTILE SECTORThe Market The textile and clothing industry has been the main driver of Pakistan’s exports for the past 50 years in terms of foreign currency earnings and job creation. 75% to 80% of total cotton and synthetic production is exported in the form of yarn, fabric, readymade garments, bed wear & made ups. Pakistan is the fourth largest producer of cotton and third largest user of cotton. The sector’s contribution to total exports has averaged nearly 60% during the last six years and declined to approximately 52% during FY2009. During July – October 2009, the sector benefitted from recovery in retails sales in advanced economies and increased price differential in local and global yarn prices. Investment of about USD7.5 billion has been made in the textile industry during the last ten years (1999-2009).10/09/12 RAZA LILANI.
  • PAKISTAN TEXTILE INDUSTRY STRENGTHS Ample availability of cheap labour. Good markets for products. Large domestic market. Industry Supportive Government Policies. Free Import of cottons is Allowed (which is used for development of special fabrics with yarn counts from 40’s to 120’s Yarn dyed fabrics & high quality blends & counts is increasing. dobby/jacquard Bed Linen-House hold products – shirts & blouses. Volumes of yarn with synthetic fibers in various 10/09/12 RAZA LILANI.
  • PAKISTAN TEXTILE INDUSTRY WEAKNESSES• Low productivity resulting in high labour costs.• Limited skills development facilities, including management training businesses are locally- owned (i.e. no foreign investments as in other countries, where foreign partners bring technical and market expertise).• Value addition is low and low unit prices are realized over dependence on foreign agents and little contact with final customers.• Limited marketing know-how, especially to break into new markets very limited experience in generating new products.• Pakistan’s image continues to be that of a low quality, low price, non consistent and unreliable supplier.• Average quality of products and lack of brand names 10/09/12 RAZA LILANI.
  • TEXTILE POLICY 2009-14• Textiles Investment Support Fund (TISF) is established under the ambit of the policy.• Measures proposed for financing from the TISF include; Export refinance available at 5%. Long term loans will be converted on the pricing applicable to LTTF. scheme, together with a grace period of one year on both existing and converted facilities, without the facility of refinancing. To settle the past claims under R&D scheme of 2007-08, allocation of PKR5.4 billion for the purpose by GoP.10/09/12 RAZA LILANI.
  • TEXTILE POLICY 2009-14• GoP will contribute part of the investment financing or part of the investment cost through the Technology Up- gradation Fund.• The policy will focus on certain sub-sector issues from fibre to garments including ginning, spinning, weaving, knitting, processing, fashion designs, handloom and handicrafts, carpets, technical textiles etc.10/09/12 RAZA LILANI.
  • TEXTILE POLICY 2009-14• The policy offers duty drawbacks of between 1% and 3% for a two-year period for value added textile exports.• All textile machinery imports will be zero-rated to encourage new investments. Import duty on raw material, sub components and components used in local manufacturing of textile plants and machinery, has been reduced to zero percent.10/09/12 RAZA LILANI.
  • GOVT INITIATIVES• Federal Textile Board• Contamination free cotton program.• Textile City• Garment Cities (Lahore-Faisalabad-Karachi).• Compliant Labour laws.• Textile Skill Development Board.• Textile Training Institute Management Board.• Tariff rationalization. 10/09/12 RAZA LILANI.
  • GOVT INITIATIVES• Increased market access through PTAs and FTAs.• Removal of sales tax on textile chain• R&D support during 2005-8( 6% to garment, 5% home textiles and 3% on dyed printed fabrics).• National Textile Strategy Committee.• Textile Policy Initiatives (Infrastructure, Skills Development, Technology Upgradation, Supply of Raw Material).• Ginning Institute.10/09/12 RAZA LILANI.
  • World Textile & Clothing Trade (US$.billion)900 850800 Total700 675600500 453 458400 331 334 356.42 311300 213200 105100 0 1985 1990 1995 1998 1999 2000 2004 2005 2010 2015 10/09/12 RAZA LILANI.
  • What ails Pakistan’s Textile sector• The Industry is unable to absorb and pass on the rising cost of production.• Products are basic in nature, low value added and thus fetching low prices.• The machinery installed being old relative to our competitors, hence electricity intensive, less productive and carry higher maintenance cost.• Increased wastage of inputs adding to the cost.• Low productivity of labour.• Low return on capital.• Due to low returns and better tax treatment in non-industrial sectors, Pakistani entrepreneurs have been investing in non productive sectors. 10/09/12 RAZA LILANI.
  • What ails Pakistan’s Textile sector• Low Level of skills.• Insignificant expenditure on innovation, product development & R&D.• Pakistan’s export houses lack capacity to meet bulk orders.• Inability to meet requirements of consumers in terms of fashion and design.• Uncompetitive ness in terms of adherence to contracted quality and delivery schedule.• Due to higher investment competing countries enjoy better economies of scale. 10/09/12 RAZA LILANI.
  • THE FUTURE VISION• Competing on price is no longer effective in gaining share in the global market.Instead• “Technological Innovations” and “Branding” strategies are future directions.10/09/12 RAZA LILANI.
  • FUTURE COURSE To compete manufacturers will have to take urgent steps to minimize costs. Eliminate wastages at all stages of supply chain. Improve productivity levels. Shift to value addition and differentiated products. Market proximity will become an increasingly valuable competitive advantage as customers demand better quality of service, time lines and reliability of delivery. 10/09/12 RAZA LILANI.
  • FUTURE COURSE• Government has to negotiate for Market Access and preferential terms.• Trade Agreement (Bilateral, Multilateral, Regional, Free Trade) will gain more importance and hence needs more focus and professional approach.• Investment in modern technology (Competitiveness)• Investment cost for BMR and additional capacity should be at low mark up rate. 10/09/12 RAZA LILANI.
  • • THE WAY FORWARD: CHALLENGES TO BE ADDRESSED1. Assist the Industry to sustain its existing market shares2. Synergise all policy initiatives to support the Industry to develop its competitiveness in the changing global environment3. Focus on Short Term Strategies with result oriented approaches to help companies progress4. Promotion of the Value Added products. This Sector has the possibility to create more than 1 million additional jobs – more than any other sector10/09/12 RAZA LILANI.
  • Automotive Industry Total auto sales during first half of FY2010 increased by 16.37% to 61,021 units from 52,435 units in the same period of last year. The auto industry was operating at 37% of its installed capacity of 273,000 units per annum in FY2009 and it is expected that 20% growth in sales in FY2010 can easily be met through higher production by assemblers utilizing the existing capacity.10/09/12 RAZA LILANI.
  • Automotive Industry Pakistan has the second highest number of CNG powered vehicles in the world with more than 1.55 million cars and passenger buses, constituting 24% of total; vehicles in the country. Investment in the automotive sector stood at US$70.2 million in July 08 – April 09. Despite recessionary phase Indus Motor Company and Honda Atlas Cars launched new models for their key products, Corolla and City in the local market.10/09/12 RAZA LILANI.
  • Automotive Industry Car sales are related to the interest rate regime functional in Pakistan especially in the small-low and economy segments, whilst purchases in the small-high segment (1300cc and above) are dependent on rising income level and improved living standards. 2011-12 – Inspite of increase in price, there is 20% increase in the sales of the vehicle in Pakistan10/09/12 RAZA LILANI.
  • Energy (Power, Oil & Gas) The energy industry is regulated by the Policy for Power generation Projects 2002, Policy for Development of Renewable Energy for Power Generation 2006 and Petroleum Exploration & Production Policy 2009. Customs duty at the rate of 5% applicable on import of plant, machinery & equipment not manufactured locally for power generation projects whilst zero-percent customs duty applies on plant, machinery and spares imported by power generation projects under nuclear and renewable energy sources like solar, wind, micro-hydel bio-energy, ocean, waste-to-energy, hydrogen cell etc. 10/09/12 RAZA LILANI.
  • Energy (Power, Oil & Gas) For power projects above 50MW one-window support to be provided at the federal level. For projects below or up to 50MW support to be provided at the respective provincial level. Royalty will be payable at the rate of 12.5% of the value of petroleum at the field gate. Local petroleum companies are encouraged to establish joint ventures with foreign concerns. Import of equipment related to the petroleum & refining sectors allowed on concessionary rates. The lube industry has been deregulated.10/09/12 RAZA LILANI.
  • Fertilizer Industry There are 10 fertilizer units (6 in the public sector and 4 in the private sector) in the country, having an installed capacity of 4.3 Million Tonnes (1.7 Million Tonnes in the public sector and 2.6 Million Tonnes is the private sector). Total production of fertilizers in 2001-02 was 5 million tonnes.10/09/12 RAZA LILANI.
  • Cement Industry of Pakistan Cement is one of the major industries of Pakistan. Cement sector contributes 0.76 percent to GDP while it maintains a weight of 4.41 percent in the overall manufacturing. Pakistan Cement Industry has huge potential for export of cement to neighboring countries like India, U.A.E, Afghanistan, Iraq & Russian States. The country at present has 29 cement plants with an installed capacity of producing around 39 million tones of cement. There has been a robust growth of cement demand seen both in domestic and exports market during the last decade. 10/09/12 RAZA LILANI.
  • Cement Sector Over ViewThere are 29 cement production units in the country. Up to May 2007, thetotal installed cement production capacity is 36.841 million tones. By the end ofJune2011, the installed cement production capacity has touched the level of49.579million tones.Due to political instability and lack of allocation of funds for public sectordevelopment program, cement industry of Pakistan was in the recession phasehad registered an average growth rate of 2.96% for the period from 1990to2002. For the period from 2003 to 2007 cement industry of Pakistan hadregistered an average growth rate of 20%.The boost in cement sector is because of the rising construction activity in thecountry, reconstruction activity in Afghanistan and increasing developmentexpenditure by the government. 10/09/12 RAZA LILANI.
  • Cement Exports Pakistan is ranked 5th in the world’s cement exports after a huge increase of 47 percent in exports during last fiscal year. India has become one of our major market of cement export by land route but due to some Non-Tariff barriers we could not encash its true potential. Pakistan could achieve the mark of 13 to 14 million tonnes exports by the end of the fiscal year keeping in view Indian market which has once again started importing cement from Pakistan.10/09/12 RAZA LILANI.
  • Export of Cement & Clinker Cement Clinker Export Breakup OtherFinancial Afghanistan India Other Countries Total %age North South Countries Years Via Land Via Sea & Land Via Sea Via Sea Exports Incr/(Decr) Zone Zone Quantity in Metric Tons Quantity in Metric Tons2003-2004 1,118,293 - - - 1,118,293 137.02% 1,088,218 30,0752004-2005 1,407,900 - 157,270 1,565,170 39.96% 1,516,370 48,800 -2005-2006 1,413,994 - 91,165 1,505,159 -3.83% 1,409,492 95,667 -2006-2007 1,725,526 - 1,096,995 390,973 3,213,494 113.50% 1,929,938 1,283,5562007-2008 2,777,826 786,672 3,045,995 1,106,127 7,716,620 140.13% 5,111,607 2,605,0132008-2009 3,148,306 634,455 6,061,035 908,690 10,752,486 39.34% 6,989,136 3,763,3512009-2010 4,013,670 722,967 5,637,163 283,436 10,657,235 -0.89% 6,960,854 3,696,3822010-2011 4,725,165 590,104 3,910,675 200,169 9,426,112 -11.55% 6,686,824 2,739,2842011-2012 2,501,165 350,059 1,607,157 - 4,458,381 -4.58% 3,282,402 1,175,979 6 months 10/09/12 RAZA LILANI.
  • PERFORMANCE OF CEMENT INDUSTRYThe Financial Year 2010-2011 was not fruit full forthe cement industry of Pakistan. Sluggish demand inthe local market, increased competition in theinternational markets and a fall in profit marginsmarked the highlights of the financial year. Inaddition to this, disruption of distribution channelsdue to floods and increase in raw material (coal)costs further added to the cost of the cementmanufacturers.10/09/12 RAZA LILANI.
  • PERFORMANCE OF CEMENT INDUSTRYThe demand for cement remained stagnant in thelocal market due to inadequate public spending andnegligible private sector spending because of lack ofgeneric economic growth. The government cutdown on its Public Sector Development Program(PSDP) by 77 per cent during the financial year whichhas affected some of the ongoing Mega projects.10/09/12 RAZA LILANI.
  • PERFORMANCE OF CEMENT INDUSTRYThe lesser demand forced players in the industry to severeprice competition to sell a cement bag for as low as Rs235although, later on the manufacturers disciplined their priceswhich reached the Rs380 per bag mark. During the FY 2011,the domestic dispatches fell to 22 M Tonnes from 23.551 MTonnes in the previous year, marking a 6.9 per centdecrease.10/09/12 RAZA LILANI.
  • PERFORMANCE OF CEMENT INDUSTRYAfter experiencing years of growth the cement industry hadto face a tough year in the international market. In the pastcement has been exported to Afghanistan, India, Sri Lanka,China and Africa. However, in the outgoing year there wassome increased competition from the Middle East and thecement industry was hit with a fall in cement exports. Thecement exports fell by 11.55 per cent from 10,657,235 MTonnes to 9,426,112 M Tonnes.10/09/12 RAZA LILANI.
  • CHEMICAL INDUSTRYThere are 12 chemical factories in the country producing, soda ash, sulphuric acid, caustic soda, chlorine gas and other chemicals. The contribution of the chemical industry towards GNP is only 3%. This industry is not fulfilling domestic requirements, so a large amount of foreign exchange is spent on the import of different chemicals every year.10/09/12 RAZA LILANI.
  • Engineering Industry There are 4 heavy Engineering Industries in public sector (1) Heavy Mechanical Complex, Taxila (2) Heavy Foundry Project, Taxila (3 Pakistan Machine Tools Factory, Landhi (4) Pakistan Steel Mills, Karachi. (5) Pakistan Ordinance Factory Wah (Defense Production) (6) Karachi Shipyard & Engineering Works Karachi10/09/12 RAZA LILANI.
  • 3. Weakening of Large Scale Manufacturing Sector 1.A key weakness of the Pakistani Economy is traceable to the non- availability and high price of energy. Also, Pakistan’s energy mix is skewed heavily towards the most expensive sources of energy with more than 64% from thermal versus 33% from hydel. 10/09/12 RAZA LILANI.
  • While coal has negligible contribution. Hence, it is imperative to invest in energy generation with more use of coal (imported initially, until local resources become available), hydel, and imported gas. In addition, Pakistan’s energy consumption stands in contrast to almost all industrial economies with domestic use of electricity 46.6%.10/09/12 RAZA LILANI.
  • The Composition of our Energy Consumption10/09/12 RAZA LILANI.
  • As Pakistan industrializes, this mix will change with industrial energy consumption going up manifold. The Government over the next 2-3 years will prioritize provision of energy to manufacturing installations over other users. As per cabinet decision, Industry is Second priority after residential consumers, followed by Commercial IPPs and CNG Stations.10/09/12 RAZA LILANI.
  • 2. The state will encourage investments in improving business processes and technologies by fostering strategic alliances with foreign entities. This intervention will include the provision of matching grants for purposes of diversification and brand development / acquisition. The Trade Policy has announced Government support for opening of Export Marketing Offices abroad, buying franchises and equitation of brands 10/09/12 RAZA LILANI.
  • 3. Over the next five years, the Government will reform the steel sector and extend full support to develop indigenous metallurgical capabilities. While the capacity of Pakistan Steel Mills will be increased substantially in the next ten years and more metallurgy institutes will be set up in national universities, foreign investment in the sector will be encouraged based initially upon imported iron ore, with a transition towards exploitation of the large deposits of iron ore in the country.10/09/12 RAZA LILANI.
  • Top 10 Crude Steel Production (million tonnes) Rank Country / Region 2007 2008 2009 2010 WORLD 1,351.3 1,326.5 1,219.7 1,413.6 1 CHINA 494.9 500.3 573.6 626.7 2 EUROPEAN UNION 209.7 198.0 139.1 172.9 3 JAPAN 120.2 118.7 87.5 109.6 4 UNITED STATES 98.1 91.4 58.2 80.6 5 RUSSIA 72.4 68.5 60.0 67.0 6 INDIA 53.5 57.8 62.8 66.8 7 SOUTH KOREA 51.5 53.6 48.6 58.5 8 GERMANY 48.6 45.8 32.7 43.8 9 UKRAINE 42.8 37.3 29.9 33.6 10 BRAZIL 33.8 33.7 26.5 32.8 11 TURKEY 25.8 26.8 25.3 29.0 12 PAKISTAN 4.3 4.3 4.3 4.310/09/12 RAZA LILANI.
  • Some Mega projects on the way4.The government will facilitate the establishment of a Petrochemical Complex near a major port, or refinery as a private- public partnership. It will involve setting up a Naphtha cracking facility for the production of Olefins (Monomers, Polymers and Intermediate Chemicals) and b) Aromatic Petrochemical Complex linked with new refineries. 10/09/12 RAZA LILANI.
  • 4. Prospect of Chinese Entrepreneurship in Industrial Joint Ventures10/09/12 RAZA LILANI.
  • 1. The Silk route/Karakoram Highway connects China and Pakistan with what must be the most harrowing trail of asphalt on earth. From Kashgar to Islamabad, the road stretches 1260 kilometers, and pierces the territory of at least five ethnic groups. The highway was begun in the late 1960s. China provided most of the engineering know- how, building bridges to span. On the Pakistan side of the border alone, more than 400 lost their lives.10/09/12 RAZA LILANI.
  • 2. 330MW Chashma-2 Nuclear Power Plant becomes operational Pakistan’s third nuclear electric power plant became operational, pumping another 330MW into the national grid in a bid to help meet country’s growing energy demand and cut down the shortfall. The generation of additional 330 MW electricity would provide immediate relief to a section of consumers, adding that two more power plants C-3 and C-4 already under construction at this site would help in paving the way for PAEC to meet the government assigned target of 8800 MW by the Year 2030.10/09/12 RAZA LILANI.
  •  Pakistan has a small nuclear power program, with 725 MWe capacity, but plans to increase this substantially. The country’s first Canadian pressurized heavy water reactor (PHWR) at Karachi – KANUPP, with a gross capacity of 137 MWe is generating net 125 MWe and is under international safeguards. The second unit is Chashma-1 (CHASNUPP-1) in Punjab, a 325 MWe (300 MWe net) 2-loop pressurized water reactor (PWR) has been supplied by China’s CNNC under safeguards. The main part of the plant was designed by Shanghai Nuclear Engineering Research and Design Institute (SNERDI) and it started operations in May 2000. It also has a design life of 40 years.10/09/12 RAZA LILANI.
  •  Completion of Chashma-2 three months ahead of the scheduled time was a reward for the joint efforts of Chinese and Pakistani teams, the benefits of which will go directly to the people of Pakistan. It is an illustrious example of the Pakistan-China cooperation in the field of nuclear science and technology. “Completion of this project takes to even greater heights the long and time-tested friendship between the two countries”10/09/12 RAZA LILANI.
  •  Work on the Chashma-3 and Chashma-4 reactors with 300 MWe each is also under way and would nearly double this capacity, adding another 600 megawatts to the grid. According to the International Atomic Energy Agency, there are 443 nuclear power reactions in operation, with a total installed capacity of over 375 GW(e) around the world.10/09/12 RAZA LILANI.
  • 3. A Joint Venture to manufacture Electronic Appliances in Pakistan Pakistan’s Ruba Group and China’s Chong Hong Group have formed a joint venture to produce electronic appliances including TV sets, refrigerators, LCDs and air conditioners in Pakistan. The project has investment of $11 million, followed by additional investment of $100 million.10/09/12 RAZA LILANI.
  • 4. Pak China Investment Company Limited (PCICL) PCICL is a DFI formed under the initiatives taken by Government of Pakistan and Peoples Republic of China for promotion of Trade, Investment and Economic Growth of Pakistan. The company was incorporated in July 2007 with an Authorized Capital of USD 200 Million and was formally launched in December 2007. The company is a joint venture in which equity is equally contributed by Government of Pakistan and China Development Bank (one of the largest State Owned banks of Peoples Republic of China).10/09/12 RAZA LILANI.
  • Pak China Investment Company Limited in view of its inherentstrengths and mandate aims to become a hub for investmentactivity and add value to sectors like Industry, Agriculture,Services, Information & Technology, Manufacturing, Real Estateand Infrastructure etc, for which we offer conventional andinnovative solutions to Investors and Projects through a full rangeof Investment Banking services.10/09/12 RAZA LILANI.
  • 5. PRODUCTION OF DEFENCE EQUIPMENT Pakistans Al Khalid Tank, widely considered one of the most competent Main Battle Tanks (MBTs) in the global arms market, has received an update, according to Grande Strategy sources. This new version of Al-Khalid is said to be ready for production, although orders are yet to be placed for production to begin. The Al Khalid II is said to have a new armor that has been tested to defeat all known 120mm and 125mm rounds. This "special" armor is a major technological breakthrough for Pakistan. The tank has received a new transmission and revised electronic turret control10/09/12 RAZA LILANI.
  • A Joint Venture to manufacture JF-17 Thunder JetsPakistan Aeronautical Complex (PAC) and Chengdu AircraftIndustries Corporation (CAC) of China, has successfullymanufactured JF-17 Thunder Jets for Pakistan Airforce havingadvance technology of US F-16. First flight 25 August 2003 Two Squadrons Operational with the Pakistan Air Status Force as of 18 February 2010 Prototypes: 6 Number built Production: ~34 Program cost US$500 million Block 1: US$15–20 million Unit cost Block 2: US$20–25 million10/09/12 RAZA LILANI.
  • Pakistan, China set-off joint venture to build Missile BoatsPakistan and China have embarked on a joint venture for theconstruction of two missile carrier boats in the Chinese portcity of Tianjin.Under the joint venture signed between Pakistan Navy andChina Shipbuilding and Offshore International Company, twoboats capable of carrying missiles would be manufacturedsimultaneously in Pakistan and China.The boat would be equipped with the latest weapons. Theirsensors would be an important addition to the fleet of PakistanNavy. The second boat would be built at Karachi Shipyard andEngineering Works.10/09/12 RAZA LILANI.
  • Other Joint Ventures  Gwadar Port  Thar Coal  Shahrah-e-Karakoram  China Mobile - Zong Investment of $2 Billion in Telecom Sector of Pakistan Pakistan has entered into various joint ventures with China for the production of new cotton seeds and colour cotton in Pakistan. Pakistan is also acquiring Chinese expertise for small water reserves for irrigation purposes.10/09/12 RAZA LILANI.